Arizona’s legislative body, led by Republicans, has successfully pushed through an $18.3 billion state budget, drawing support from across the aisle. However, the budget has sparked controversy, with some Democrats expressing concerns over compromises made to secure the deal.
Almost all Republican lawmakers endorsed the budget agreement, which features extensive state tax cuts that echo last year’s federal tax reductions advocated by former President Donald Trump.
Throughout the negotiation process, the Republican-controlled House and Senate repeatedly sent similar tax proposals to Democratic Governor Katie Hobbs, who consistently vetoed them.
Governor Hobbs had previously indicated a willingness to sign a scaled-back version focused on middle-class tax relief but was open to broader discussions on the Republicans’ extensive plan during budget talks.
Despite Hobbs’ push for a trimmed version, Republicans stood firm, a stance applauded by House Speaker Steve Montenegro (R-Goodyear). “Now we’re going to send up nearly the same package as the last time, and the governor is going to sign it,” Montenegro asserted.
The tax reductions are forecasted to decrease taxes by approximately $1.4 billion over several years.
“That’s historic. It’s meaningful money for Arizonans,” Montenegro commented.
Howard Fischer/Capitol Media Services
Democratic leaders, including Governor Hobbs, have highlighted certain gains within the budget, despite several unmet priorities such as educational reforms and the renewal of Proposition 123 funding.
According to House Minority Leader Oscar De Los Santos, Democrats secured financing to alleviate the repercussions of federal adjustments to Medicaid and food assistance, impacting numerous Arizonans. This includes $20 million dedicated to hiring additional staff to help residents manage these changes, preventing loss of benefits due to administrative barriers.
“In a divided government, no side will get everything they want, but I want to thank community advocates and everyday Arizonans, and most of all, the House Democratic caucus for fighting for an Arizona we can afford,” De Los Santos stated.
Democrats also emphasized $37 million in continued support for low-income public schools and millions for programs offering free meals to eligible students. The budget also provides for Sun Bucks, assisting with groceries during summer for families dependent on school meals.
Nevertheless, not all Democrats were convinced, with some voting against the budget due to concerns like continued funding for state troopers under the Gang and Immigration Intelligence Team Enforcement Mission, which might be used for “immigration enforcement and border security,” as per budget details.
The governor’s office has indicated that these funds will target drug trafficking, though this focus could shift with a new administration.
“We always talk here at the Legislature about the devil is in the details,” remarked Sen. Sally Ann Gonzales (D-Tucson). “Well, I just read you what the devil is saying in this budget about this money being used for immigration enforcement.”
Sen. Catherine Miranda (D-Phoenix) also expressed skepticism, suggesting the budget reflects a defensive stance rather than a victory for Democrats.
Concerns were further raised regarding the insufficient response to issues within the school voucher program and inadequate support for public education, which saw a $16 million reduction, alongside cutbacks in adult education funding at community colleges.
Sen. Jake Hoffman (R-Queen Creek) speculated that Democratic dissatisfaction stems from the budget’s resemblance to a previously vetoed Republican plan, with few adjustments to garner Democratic backing.
“Once you set the press releases aside, it is very nearly the same budget that this chamber passed months ago, changed in ways that make it worse, not better,” Hoffman commented.
In contrast, Governor Hobbs, who negotiated the budget with Republicans, hailed it as a bipartisan success.
“When I meet with Arizonans, they tell me they want their elected officials to work together to lower costs, create jobs, keep their communities safe, and expand opportunity and freedom in every corner of our state,” Hobbs said in a statement. “Today, I’m proud to say that we have delivered.”
